I'm having an issue with logo.
Its default logo looks fine but custom logo image keep breaks.
I changed the file name to logo.png and even modified the template.php (http://drupal.org/files/issues/108733.patch)
Your help would be greatly appreciated!

If you apply this patch then you will see header and footer logo of the exact size which you have uploaded from admin.

But if you want to make any modification in the size of the both logos then without applying this patch just create image styles for both the logos manually with machine names 'logo' and 'logo-small' for header and footer respectively.